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KARACHI 3June 2026: SM Tanveer, Patron-in-Chief of the United Business Group (UBG) at FPCCI, urges Prime Minister Shehbaz Sharif to prioritize export-led growth in the upcoming federal budget.
He raises these points during a meeting with the Prime Minister and federal cabinet members. Representatives from FPCCI and chambers of commerce also attend the session to discuss budget proposals.
Meanwhile, Tanveer praises Prime Minister Shehbaz Sharif and Chief of Defence Staff, Field Marshal General Asim Munir, for their diplomatic role in easing regional tensions. He says their efforts for peace will be remembered positively in history.
To boost the economy, he presents several key proposals. First, he recommends a 10 percent DLTL concession on year-on-year export growth, as exports remain stagnant at around $30 billion.
In addition, he calls for reducing the regionally competitive electricity tariff to below 9 cents per kilowatt-hour. He also suggests lowering industrial tax slabs and reviewing the super tax, which generates nearly Rs300 billion.
Furthermore, he criticizes the State Bank’s 100-basis-point policy rate hike. He argues that global oil prices, not domestic borrowing, drive inflation. Therefore, he says the rate hike increases debt servicing costs by around Rs600 billion.
He also highlights a fiscal imbalance. According to him, the government collects Rs300 billion through super tax but loses nearly double that amount in interest payments.
Moreover, Tanveer urges the government to activate the housing sector. He notes that it supports over 80 allied industries. He proposes a TERF-like scheme for construction, removal of Sections 236C and 236K, and an increase in housing loans to Rs30 million for the middle class.
He also points to weak performance in existing housing finance schemes. Out of 10,000 applicants, banks approve only 350 loans under the Rs2.5 million cap. Consequently, he requests the Prime Minister to intervene directly, and the Prime Minister assures oversight.
In addition, he highlights that banks hold Rs37 trillion in deposits. Around Rs20 trillion belongs to nearly 10 million account holders.
Finally, he suggests major tax reforms. He proposes that FBR use bank verification data, introduce a one-page tax return, and link CNIC with NTN. As a result, he believes tax filing can expand significantly.
